True, False, or Uncertain: After a portfolio company has an

True, False, or Uncertain: After a portfolio company has an IPO, the VCs are free to sell their stock in this company in the public market.

Mar 07 2013 06:03 PM

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Ritika N
answered on May 15, 2015

346 answers so far

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TRUE . With the Initial Public Offering the Venture Capitalist makes the first offer to sell the stocks in the market. After IPO the VC's gradually decreases its holding by selling the same in the market. The VC's investment usually takes place in six stages: Seed Funding....

-up Growth, Second Round or providing working capital, Expansionand EXIT STAGE. This is the stage where the VCs go public and make the IPOs, and gradually take the market route to divestment.

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